PEST Analysis of Sony

PEST Analysis of Sony

Pest analysis is another marketing tool. Pest analysis examines the

changes in the marketplace caused by political, economic, social and

technological factors.

Political factors changes involve one party to another who are in

control. For example rises in private healthcare and privatisations,

which is under the conservative government.

Economic factors changes include changes such as a recession creating

activity at the lower ends of the product price ranges. Also for

instance the rate of interest rates rising depressing businesses,

causing redundancies and lower spending levels

Social factors changes include changing lifestyles and attitudes. The

increase in women leaving work. , Also leading to the need for-time

saving produces for home

Technological factors involves changes as the public see it, this

creates opportunities for the new products and product improvements

and marketing techniques such as the Internet, e-commerce.

Political factors within Sony

Political factors can have a direct impact on the way Sony operates.

Decisions made by government affect every day businesses and can come

in the form of policy or legislation.

The political factors have a huge influence upon the regulation of

businesses. Political factors effecting Sony can include the

government laws such as the introduction to the minimum wage affects

the employees of Sony as the hourly rate increases each year, every

time the minimum wage increase Sony will have to pay taxes. This means

less profit for Sony, unless they increase prices of items.

Introduction on euro makes trading easier, the exchange may drop in

the UK, making Sony easier to expand. The policy Protectionism puts

barriers on imports into a country to protect domestic producers which

can affect the imports of Sony product in a positive light.

Economic factors within Sony

The economic factors effecting Sony can include the fall of Interest

rates are low. Interests each year has decreased drastically overall

from 1998 6.25% to 2001 of 4%, leaving the average rate of 5.4%. When

Sony has to pay interest on loans, the fall in interest rates reduces

interest costs for in Sony.

Alternatively a rise in interest rates will increase interest costs

for the business. On the contrary High interest rates can make the

pound an attractive currency ...

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...epartment, shortage of IT worker can

cause inconsistency when a computer breaks. Mechanisation and

automation- The production, storage and marketing of Sony products can

be affected by the increased use of new technology such as televisions

now being attached to DVD?s and VCR?S, downloading, buying illegal

products.

Processes ? the need to cut costs, speed up production and compete

effectively is a huge driver with Sony. Invention and innovation ? The

need to create new technology and new productions within Sony can be a

major drive for the research and development department within the

company.

A business such as Sony who have achieved a breakthrough which is

patented is a major sustainable competitive advantage over other

competitors. For example Sony are spending millions on updating,

adding new features onto products regularly. Internet ? the use of

the Internet for business-to-business transactions, such as relations

with the suppliers and supply chain management of Sony is the most

important technological change currently affecting Sony. The way in

which Sony respond to developments such as creating new products can

determine their competitive future.